Ever wondered why your account balance is falling when you aren’t really spending? Have you ever seen small amounts coming out on your bank statement and then forgotten to check what they’re for? A great way to start your financial spring clean is a declutter of your direct debits!
1. Make a list – write down all the regular monthly payments that you have coming out each month. You can either do this either by going through your bank statements or reviewing your direct debits and standing orders on your online banking.
2. Understand what it is – while your aim should be to reduce your outgoings, it’s important that you don’t cancel anything that you really need. Blindly cancelling that direct debit to the insurance company you’ve never heard of might just invalidate your life insurance and mean your family is no longer protected.
3. Opportunity for review – ask yourself when the last time was that you reviewed each item of expenditure. Does the boiler cover you took out 3 years ago seem a lot more than you remember? Lots of providers give promotional offers in their first year so this may be a great opportunity to make sure you are getting the best deal
4. Cancel what you don’t need – be ruthless!! When was the last time you actually used Amazon Prime? Do you ever read that magazine you subscribe to? If you don’t need it, cancel it.
5. Don’t forget Standing Orders – although you have more control over these, you may still have some that are no longer needed. Apply the same process here.